The UK Breakfast Cereal Market
There was a time when no breakfast was complete without cereal. However, cereal sales are falling as habits change, down by £78 million in the past year.
Not that there’s a lack of opportunity for a comeback. There are 21 billion breakfasts eaten in the UK every year and fewer people skip the meal now than in recent times, but foods such as cereal bars and coffee shop muffins are increasingly popular choices.While cereal brands are innovating to try and claw back some space on the table, the UK market is still dominated by familiar names. Weetabix remains the best-selling brand with sales worth almost £110 million, while four Kellogg’s cereals, led by Crunchy Nut, follow behind. As the competitions gets ever fiercer, brand equity can play a crucial role in deciding which cereals win a place in the shopping trolley.
Each time we encounter a brand – by seeing it, hearing about it or experiencing it – we build up a sense of what that brand is about. Some brands make us feel good. Others… don’t. But our perception matters because it affects our readiness to buy. We call this Brand Equity.
At Vision One, we know that understanding brand equity is only half the story. The other half is knowing how to improve it. But you can’t do one without the other, and that means measuring brand equity in order to take the next step.
This case study looks at one of the most popular and well known cereal brands, Weetabix, and how its brand equity shapes up using BrandVision – a strategic tool that helps brand owners make informed decisions to maintain and grow their brand with confidence.
The Brand Equity Wheel
The Brand Wheel is at the hub of BrandVision and our Brand Equity Model which comprises of four key themes and 8 key metrics:
- The Brand Pyramid (aka Brand Funnel) reflects the theoretical journey towards building a strong brand relationship & brand loyalty.
- Brand Stature reflect the uniqueness and leadership within the market.
- Brand Delivery reflects the ability to satisfy customers and generate brand recommendations.
- Brand Utility is arguably the most important. Needs identifies the rational and emotional needs in the market and how brands perform. Value identifies the ability of a brand to command a price premium
Leading Cereal Brand Equities
There’s plenty of choice on the supermarket cereal aisle, but judged alongside these three other leading brands, Weetabix has the tastiest brand equity score with 71 points. However, competition for a place in the cereal bowl is strong, with Special K just behind on 68, and Kellogg’s Corn Flakes catching up fast too.
The Brand Pyramid
The brand pyramid is made up of 5 key metrics:
Every brand has a unique brand structure. Comparisons with key competitors will help identify future opportunities. Overall, Weetabix has a strong Brand Pyramid structure, with a very high ratings for; Brand awareness and Customer Loyalty. The resulting brand loyalty metric of 63% is way above the average of 27%.
Meeting Rational And Emotional Needs
Brand Values vary considerably by individual brand – but more own or has strength of most important value ‘Convenience’. Each of the brands have their own ’emotional’ strength which is an opportunity to exploit their own emotional positioning. Whilst Weetabix is the cereal that best meets wellness and health, Cornflakes and Special K match with convenience and Speed.
Added Value (£)
Added Value is a KPI that adds a unique monetary dimension to our brand equity measurement and helps identify the ability of a brand to command a premium price – i.e. a brand customers would potentially be happy to pay more for more.
Brand Delivery reflects how well the brand or product delivers – this includes satisfaction and recommendation (Net Promoter Score – NPS) – promotors of the brand.We can see that Weeabix hold a leading role in terms of satisfaction as well as having the highest scores in NPS & recommendation.
~ Differentiation & Leadership ~
Brand Stature is the 4th and final dimension of the Brand Equity model and comprises of a further two key components. Brand Differentiation which is universally regarded by brands as a fundamental component of any brand and reflect the ability of the brand to standout from the crowd. Leadership is also key and reflects the stature and status of the brand – as many shoppers will tend to follow conventional wisdom and buy ‘big’ brands.